Lawyer admits guilt in $4 million scam

Published 7:09 pm, Friday, January 3, 2014

BRIDGEPORT--Joseph Haddad built a legal career around settling personal injury cases.

Now some of those cases could land him in federal prison for as much as five years.

Haddad, who had law offices in Trumbull and then Bridgeport, is the seventh person to plead guilty in an undercover FBI probe dubbed Operation Running Man targeting fraudulent personal injury claims paid out by insurance firms.

Haddad, 65, appeared before U.S. District Judge Stefan R. Underhill late Friday and admitted guilt to charges of conspiring to commit mail fraud and mail fraud, both of which carry maximum 20-year terms.

However Haddad agreed not to appeal any sentence of 63 months or less imposed by Underhill on March 28.

That agreement is part of a plea-bargain deal worked out by Assistant U.S. Attorneys Christopher Schmeisser and David Sheldon and Haddad's lawyer, John R. Williams. Haddad also agreed to make restitution of $1,758,368 to the various insurance companies like Nationwide, Travelers, Progressive, Metropolitan and Esurance who paid out on fraudulent medical claims.

The FBI investigation, coordinated by Special Agent Daniel Curtin, infiltrated the conspiracy by sending an undercover agent to Haddad. The agent claimed he was injured in a car accident.

Often those runners would review and obtain accident records from local police departments, particularly Bridgeport.

After meeting with the clients Haddad often would recommend they visit Francisco Carbone, a former doctor with a prior federal health fraud conviction and whose license was pulled by the state. Carbone fabricated injuries in reports and provided permanent disability ratings often without even examining clients.

On occasion he would send clients with instructions to Marshall, who would write prescriptions for narcotic pain killers, often without examining the patient.

Haddad told the undercover agent to request stronger medication "even if you don't take it."

His clients also would obtain at least six months of treatment from the chiropractors.

The undercover agent was told by Haddad this time frame was necessary "because that way I got a good quality case and they can't say you didn't treat long enough."

Chiropractors who sent a patient for a nerve conductivity test provided by Kirschner's Midas Medical would get a kickback on the $2,000 bill, according to the FBI.